Mark E. Leininger Elected Chief Executive Officer FAIRFIELD, N.J., May 21 /PRNewswire/ -- Software Publishing Corporation Holdings, Inc. (Nasdaq: SPCO), publisher of Harvard Graphics(R) 98, today announced its financial results for the fiscal quarter ended March 31, 1999. Net sales for the period ended March 31, 1999 increased approximately $1,012,000 or 26% to $4,935,528 from $3,923,446 for the period ended March 31, 1998. The increase in net sales was largely attributable to the effectiveness of the Company's direct marketing activities, especially with respect to the Company's digital camera product offers. Expenses increased by $584,901, or 17%, to $4,074,505 from $3,489,694, as a result of an increase in expenses associated with the Company's Internet activities and efforts to expand its European operations, as well as expenses associated with increasing the revenue-generating opportunities of the Company's direct marketing operations. This increase in expenses was partially offset by a $660,000 unrealized holding gain relating to the Company's trading investment in Common Stock of X-Ceed, Inc. Basic and diluted loss per share improved to ($0.13) in the fiscal quarter ended March 31, 1999, from ($0.19) for the quarter ended March 31, 1998. The Company also reported a net loss of ($671,942) compared to a net loss of ($568,392) for the quarter ended March 31, 1998. "The first quarter's 26% increase in net sales year over year suggests the Company has created viable revenue-generating marketing programs and strategies from which to generate future revenue increases," said Mark E. Leininger, President and Chief Executive Officer of the Company. "By broadening our product mix to include well-received digital cameras and expanding our European operations, we are developing significant sales opportunities. These efforts are built upon our considerable direct marketing experience, large user base, Internet strategy, and other assets that we feel provide an important competitive advantage going forward." The Company also disclosed that although it expects continued revenue growth, it does not expect to maintain the same level in the second quarter, primarily due to anticipated difficulties in obtaining sufficient quantities of digital cameras. The Company also announced today that Mark E. Leininger has been named Chief Executive Officer by the Company's Board of Directors. Mr. Leininger was appointed the Company's President and Chief Operating Officer in January 1998. Commenting on Mark Leininger's appointment to Chief Executive Officer, Marc E. Jaffe, Chairman of the Company's Board of Directors, said, "Mark has played an essential role in the Company's turnaround over the past year. Under his leadership, the Company has made substantial positive changes, including significant improvements in the Company's financial results, a comprehensive restructuring of operations, and forays into new opportunities like the Internet." In unrelated matters, the Company also announced today that it has agreed with Seafish Partners, holder of 930 shares of Class C Preferred Stock, that in the event the Company calls the Class C Preferred Stock for redemption by June 4, 1999, then Seafish Partners will have the option to purchase the X-Ceed shares held by the Company for an aggregate value of approximately $2,000,000. Additionally, the Company announced that based on recent shareholder feedback on its intention to rename the Company Visicom Inc., the Company will spell the name Vizacom Inc. Stockholders will be asked to approve the name change at the 1999 Annual Meeting. About the Company Software Publishing Corporation Holdings, Inc. (http://www.spco.com) ("SPCH"), through its subsidiaries Serif Inc., Serif (Europe) Limited and Software Publishing Corporation, is an international developer, publisher and supplier of visual communications software, including desktop publishing, design, presentation graphics, and business productivity software, for the corporate, small office/home office ("SOHO") and consumer markets. The Company's products are sold through a multi-channel distribution system, and include Harvard Graphics(R), Harvard(R) Design Studio, Harvard(R) 3D, Harvard(R) Instant Charts, Serif PagePlus(TM) and Serif DrawPlus(TM). SPCH's Serif subsidiaries operate significant direct mail and telemarketing operations that sell its and third party products, including digital color cameras. (For information on products, see http://www.harvardgraphics.com and http://www.serif.com) Safe Harbor Statement Except for historical information, the matters set forth herein which are forward-looking statements involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, the level of business and consumer spending for computer software, the market acceptance and amount of sales of the Company's products, the extent that the Company's direct marketing operations achieve satisfactory response rates, the ability of the Company to obtain sufficient supplies of marketable products, the competitive environment within the computer software and direct mail industries, the Company's ability to raise additional capital, the extent and cost-effectiveness with which the Company is able to develop, acquire or license marketable products, and the market acceptance and successful technical and economic implementation of the Company's Internet programs. Investors are directed to consider other risks and uncertainties as discussed in documents filed by the Company with the Securities and Exchange Commission. Trademarks The Harvard product line is a group of products having no connection with Harvard University. Consolidated Balance Sheet Summary Information March 31, 1999 (Unaudited) Total current assets $5,843,365 Property and equipment, net 418,081 Acquired software, net of accumulated amortization of $5,338,167 1,568,833 Goodwill, net of accumulated amortization of $199,856 174,875 Total assets 8,972,788 Total current liabilities 5,544,145 Total stockholders' equity $3,341,684 Consolidated Statements of Operations (Unaudited) Three Months Ending March 31, 1999* 1998 Net sales $4,935,528 $3,923,446 Gross profit $3,402,563 $2,965,802 Net loss $(671,942) $(568,863) Net loss per common share $(0.13) $(0.19) Weight average number of common shares outstanding -- basic and diluted 5,179,394 3,014,298** * Operating results for the three months ended March 31, 1999 is not necessarily indicative of the future results of the Company. ** The weighted average number of common shares outstanding at March 31, 1998 has been adjusted to reflect the Company's one-for-three (1:3) reverse stock split made effective May 27, 1998.  